Hong Kong should strive to become a hub for multifamily offices to enhance its economy and global standing in a volatile market, as these entities wield greater influence than single-family offices, according to the group CEO of Raffles Family Office.
Multifamily offices can enhance Hong Kong’s “economic landscape, contributing to greater gross domestic product, job creation and a positive global image for the city”, said Kwan Chi-man. Such offices serve multiple ultra-high-net-worth families and typically need a licence as they operate as commercial ventures.
“For the wealth management industry to advance, multifamily offices are undoubtedly a key growth engine,” said Kwan, who is also the chairman of the Family Office Association Hong Kong. “Hong Kong should look to diversify its focus beyond single-family offices.”
These “institutional-grade entities” would contribute to the city’s financial ecosystem, he added.
The Hong Kong government has taken several steps over the past three years to become a family office hub, with the number of single-family offices reaching 2,700 thanks to tax incentives and immigration policies. Meanwhile, there were only “a couple of hundred” multifamily offices in Hong Kong, according to a March report by the Centre for Family Business at the Chinese University of Hong Kong.
